October 21, 2012 / 12:42 PM / in 8 years

Credit Suisse, UBS could cut a total 7,000 jobs: paper

ZURICH (Reuters) - UBS UBSN.VX is to cut 3,000-5,000 jobs as part of cost-saving measures to offset falling profit, while rival Swiss bank Credit Suisse CSGN.VX may announce 1,000-2,000 cuts, Der Sonntag newspaper reported.

A man walks in front of the office of Swiss bank UBS in the Bahnhofstrasse in Zurich August 10, 2012. REUTERS/Arnd Wiegmann

UBS plans to shed 900 jobs in information technology, alongside a further 2,000-4,000 layoffs in its investment bank and other central functions, the paper said.

A spokesman for UBS, scheduled to report third-quarter earnings on October 30, would not comment on the report.

Major banks worldwide are slashing costs as they grapple with new capital requirements, a sluggish global economy and flaccid equities trading volumes.

Speculation has been rife in Swiss media in recent weeks that the country’s two major banks will unveil further job cuts alongside quarterly results.

Last week, UBS said final decisions in an ongoing business review have not yet been taken, after a newspaper reported the it was set to axe around 2,000 jobs in information technology.

Der Sonntag’s story about possible job losses at Credit Suisse contrasted with a separate report in the SonntagsZeitung newspaper - also citing unnamed bank insiders - that Credit Suisse would hold off announcing massive job cuts or other drastic measures when it publishes its results on October 25.

Credit Suisse, which declined to comment on either report, announced an extra 1 billion Swiss francs ($1.1 billion) cost cuts at its second-quarter results after reaching a previous target to slash spending by 2 billion francs early.

Under the original 2 billion franc plan, Credit Suisse wanted to shed 3,500 positions. It said total staff numbers were down 1,500 from the end of 2011 to 48,200 at the end of June.

($1 = 0.9279 Swiss franc)

(Reporting by Caroline Copley; Editing by Dan Lalor)

Caroline.Copley@thomsonreuters.com; +41 58 306 7354; Reuters Messaging: caroline.copley.thomsonreuters.com@reuters.net

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